SBI Smart Champ vs Sukanya Samriddhi Yojana
The Modi administration introduced the Sukanya Samriddhi Yojana, a modest savings program targeted mostly at Indian girl children. The “Beti Bachao, Beti Padhao” campaign launched it. This plan aids in earning money for daughters’ marriages and schooling. Currently, the program offers an interest rate of 8.1%.
Sukanya Samriddhi Yojana
A child investment plan is now absolutely necessary. The best present you can give your kid is this. In India, there are numerous child investment plans, including numerous government programs and child investment plans from SBI.
Samriddhi Sukanya Yojana is a program that provides insurance for female children. This yojana has grown to be a popular investment choice for long-term investors looking to accumulate wealth for the girl’s future education or marriage. Sukanya Yojana provides the best tax-free return as well as financial security.
Such child insurance policies have an interest rate of 9.2% for the 2015–2016 fiscal year, up from 9.1% in the 2014–2015 fiscal year. This plan is mostly for the benefit of your girl child’s schooling.
- Max deposit INR 1.5 Lakh Annually
- Minimum deposit of INR 250/- Annually
- You can open the Account in the name of a girl before she reaches 10 years
- One account for 1 girl. Not more than that
- Accounts for this yojana are available in authorized banks and Post offices only
- You can withdraw the money only for higher education to meet the education expenses of the account holder
- Also, you can close the account prematurely if the girl gets married after attaining 18 years
- These accounts are transferable anywhere in India
- This account gets a maturity benefit after completing 21 years of opening the account
- The deposit allows for deduction under Sec.80-C of the Income Tax Act.
- You will get income tax benefits because the interest earned here is tax-free.
SBI Smart Champ Insurance
An individual non-linked participating life insurance plan is the SBI Smart Champ Insurance plan, which is provided by SBI-Life Insurance Company. According to the SBI Smart Champ review, it is specifically made to satisfy your child’s educational needs and shield them from unpredictabilities in the future.
You may assure a bright future for your child and save money for their future schooling with the aid of this plan. Infrequently paid benefits are guaranteed under the SBI Little Champ Plan and are provided during the policy term.
- The smart benefits start to flow after the child is 18 and continue to do so each year until they turn 21.
- This insurance will be maintained even while you are away.
- The annual equal installment payment you get can readily cover the child’s educational needs.
- Following the policyholder’s passing, there won’t be any more premiums due, which eases the financial load on the surviving family members.
- By selecting the appropriate category, it is also feasible to pay the premium for a brief period of time.
- In the unfortunate event that the policyholder does not survive the policy term, the nominee will be given an immediate payment of the sum promised.
- With the final payment of the smart benefit, you may even receive a survival benefit.
- Depending on your convenience, you can decide whether to pay the premium in regular installments or all at once.
- The insurer will get immediate payments in the event of a permanent disability brought on by an accident, and there is no further obligation to pay the plan’s premiums.
- According to the current Income Tax Act regulations, the policyholder is qualified for an income tax benefit in this plan.
SBI Smart Champ Plan:
A non-linked life insurance program called SBI Smart Champ Insurance Policy seeks to give a child’s requirements a financial safety net. This policy guarantees guaranteed benefits and protects the policyholder under a life insurance policy, making sure that the policyholder’s inability to pay does not prevent his or her children’s aspirations from coming true.
A final Terminal bonus, if any, and bonuses at the end of each policy year until the child turns 18 are accrued by SBI Smart Champ, a participating policy.
Wealth Assured by SBI Life – Smart Champ The proposer, who would be the life assured and the policyholder, is insured by SBI Insurance for death and accidental total and permanent disability (ATPD) for the duration of the policy.
Sukanya Samriddhi Yojana Scheme:
The Sukanya Samriddhi Account, despite being a modest savings program, has the potential to significantly improve the lives and self-esteem of young females in the nation.
In accordance with this plan, a parent or other responsible adult may open an account in a girl’s name up until the time she turns 10 years old.
The account can be opened at any post office branch and specific public sector banks, according to the government notification on the program.
Assurance Under The Plan
SBI Smart Champ
SBI Smart Champ includes benefits for child education corpus, survival benefits, death benefits, and maturity benefits. Therefore, SBI’s child plan is highly advantageous. One of the most well-known child investment programmes at SBI is the Smart Champ.
- After the child turns 18 and up until the age of 21, Promised Smart Benefits are provided for 4 years at a rate of twenty-five percent of the Basic Sum Assured as well as 25% of the granted Simple Reversionary Bonuses.
- Depending on the policyholder’s age, a lump sum benefit for death equal to a fraction of the single or yearly fees paid will be given in the event of the policyholder’s death or disability during the term.
- At maturity, the policyholder receives the final payment of the Smart Benefit, along with any vested Compensation and Terminal Bonus.
- Alternatively, you can receive the reduced price of Smart Benefits and vested bonuses in one lump sum over the previous three premium years.
- The insurance remains in effect, future bonuses continue to accrue, and Smart Benefits gets reimbursed in accordance with the original terms despite the future premiums being waived.
- Benefit from income tax on premiums paid in accordance with Section 80C and on claims received in accordance with Section 10(10D) of the IT Act.
Sukanya Samriddhi Yojana
Sukanya Samriddhi Yojana’s mission is to help women achieve financial independence by encouraging them to put money aside in a savings plan that will allow them to achieve their long-term aspirations, such as higher education or marriage, and maintain their financial security.
On January 22, 2015, the Indian government launched a social initiative to address the issue of our country’s declining gender ratio among children. The movement known as Beti Bachao Beti Padhao advocates for the belief that women should be protected and educated.
This federal initiative is jointly overseen by the Ministry of Women and Child Development, the Ministry of Human Resource Development, and the Ministry of Health and Family Welfare.
- To cease the abuse of sex determination and gender discrimination against minors.
- To make sure that more girls participate in education as well as activities.
- To guarantee the girls’ survival and protection.
The Sukanya Samriddhi Yojana seeks to address the important issues of education and marriage for young girls.
It strives to provide a bright future for girl children in India by helping parents set up a fund for their children’s excellent education and stress-free wedding expenses.
Under the Sukanya Samriddhi Yojana, the Sukanya Samriddhi Fund was established especially for this use.
Benefits Of The Plans
SBI Smart Champ
The SBI Smart Champ Plan has many benefits, including as guaranteed smart benefits, triple child protection with a lump sum payout, and the simplicity of paying a one-time or affordable premium. Discover other benefits of SBI Smart Champ by reading on.
When the policy reaches its maturity, when your child is between the ages of 18 and 21, insured persons may use smart benefits to help their children with their academic needs, as stated in the following table:
| Child’s Age | Provided Benefits |
| 18 Years | 25% Basic Sum Assured AND 25% Simple Reversionary Bonus |
| 19 Years | Same As Above |
| 20 Years | Same As Above |
| 21 Years | Same As Above + Terminal Bonus, in case applicable |
Death Benefit
This death benefit will only be paid out if the policy is in force and will be paid out as the greater of a lump sum payment or 105% of all premiums paid for a covered event throughout the policy period in the event of death or total permanent disability resulting from an accident.
Removal of Overdue Premiums
gives up all upcoming premium payments, giving your family financial security while you’re away. An earned bonus will continue to be applied, if applicable.
Tax Advantages
Take advantage of the tax benefits offered by Sections 80 C and 10 (10D) of the Income Tax Act of 1961.
Policy Loans
Prior to the preceding three policy years, the policy offers a chance to borrow money to pay for pressing financial necessities. Loans can only be accepted once the policy has accrued surrender value and are only offered up to 90 percent of the surrender value. The corporation must make the interest rates on the loan public.
Discounts
The discounted value of all future due payments, including any terminal bonuses, may be obtained in return for a single payment at a price reduction of 6.25% each year.
Sukanya Samriddhi Yojana
The Sukanya Samriddhi plan enables parents or legal guardians to financially prepare years in advance for their girl child’s future, ensuring her future and helping her to achieve her aspirations. The Sukanya Samriddhi plan has the following benefits, which make it a successful savings program for securing the financial future of girls:
Maturity Benefits
The sum of the principal amounts constantly deposited in the account and the interest that has accrued on this principal amount constitutes the account balance that a girl child will be entitled to upon the completion of a Sukanya Samriddhi plan.
This money will be given straight to the account holder or the girl child for whom the account was created. The goal of the Sukanya Samriddhi initiative is to provide Indian females the freedom to follow their goals and achieve financial independence.
Tax Advantages
The Sukanya Samriddhi Yojana guarantees the accountholder’s financial security and offers tax benefits under Section 80C of the 1961 Internal Revenue Code.
A maximum tax exemption of Rs. 1,50,000 may be acquired for all other investments that are exempt from taxes under this section.
Taxes are not payable on the maturity sum or the interest accumulated over the term of the Sukanya Samriddhi plan.
Premature or Partial Withdrawal
The Sukanya Account matures when the account holder turns 21 even if contributions may be made into it for 14 years after the date of its issuance. The account will run out when the girl child turns 21 or gets married, whichever occurs first.
If she was at least 18 years old on the day of her marriage, then you are only permitted to withdraw the remaining money from her Account.
A partial payment of up to 50% of the remaining balance in her account is permissible, but solely to cover the cost of her further education.
Superior Interest Rate
The greatest interest rate is offered by this plan. So. This yojana is among the ideal ones for you if you’re making future plans for your girl child.
To Summarize –
If you just want a basic insurance plan for your kids, you can just pick the Smart Champ Plan. On the other hand, the Smart Scholar Plan is a choice if you want to enhance your finances while taking some risk.
The performance of the funds must be regularly monitored when choosing a market-linked insurance plan. By selecting the appropriate strategy, you may provide your children with a steady source of income to meet their future financial needs.
For more Details Visit
Sukanya Sukanya Samriddhi Yojana – Bankbazar
SBI Smart Champ – SBI
FAQs
What is better than Sukanya Samriddhi Yojana?
There are several ways to safeguard your girl child’s future, including the Sukanya Samriddhi Yojana and Children’s Mutual Funds. On the market now, there are a number of kid plans and children gift plans with lock-in periods of five years or until the girl child reaches the age of 18.
What is the highest amount that SBI Life Smart Champ will guarantee?
Under this policy, the least basic sum assured is Rs. 100,000, while the highest is Rs. 1 crore. If you are unhappy with the terms and conditions of the SBI Life – Smart Champ Insurance policy, you have 15 to 30 days to return the insurance.